The first week of 2026 opened with strong trading performance, with broad gains across asset classes. The S&P 500 rose 1.6%, while small-cap stocks showed even more impressive strength, with the Russell 2000 surging 4.6%, and the VOO fund attracted $10 billion in inflows in just a few days. From Wall Street's trading activity, risk appetite is clearly warming up.

The real challenge lies ahead next week. From Tuesday to Thursday, key economic data including CPI, PPI, and retail sales will be released in concentrated fashion, synchronized with frequent appearances by Federal Reserve officials. Market expectations suggest the current interest rate is likely to remain unchanged. The window for rate cuts may not materialize until after the new Federal Reserve Chair takes office. Additionally, geopolitical tensions remain unsettled—the Middle East situation continues to be gridlocked, and these sudden risk factors combined with economic data uncertainty will inevitably create market volatility.

From a trading perspective, next week presents a dual test. With data-intensive releases, mixed policy signals, and unresolved geopolitical risks, volatility will absolutely be substantial. It is recommended to strictly manage position risk and not get swept away by short-term gains.